Sociology of Economic Life

participants in positions of authority can privatize the 
economy's assets for their own gain. Unequal institutions 
hinder development by limiting people's capacity to access 
resources, increase production, and increase their incomes. A 
review of country development paths demonstrates that 
institutions that enrich elites and allow them to take resources 
and products have exacerbated underdevelopment. 
Countries that have had colonial control are more likely to be 
affected by such extractive institutions. They have outlived 
the independence of these countries, and their power has been 
completely taken over by local leaders. There are various 
examples of societal repercussions that may be followed back 
to decades-old institutional frameworks. 
Political Power in Economic Structure 
Economic structure determines wealth distribution, which 
serves as the foundation for legal state and autonomous state 
political authority. By maintaining institutions that promote 
the production structure, the obtained political power is used 
to perpetuate income distribution. Finally, the economic 
structure determines the rate of economic growth. This is the 
essential process for the reproduction of organizations, 
political power, and economic institutions. 
Throughout structural transitions, the distribution of wealth, 
direct rule, and enforced political authority vary, permitting 
the establishment of new institutions to regulate the new 
economic structure. When the state effectively enforces 
production institutions, systemic changes that promote 
growth are noticed (Zubiaurre et al., 2016). This has the 
potential to catalyze democratic revolutions or stabilization, 
as well as accelerate the transfer of technology all across the 
economy. In contrast, many regions of the world are facing 
financial slowdowns, accelerations, and crises, and these 
economies are often embedded in democratic democracies. 
Their inability to establish democracies and provide a solid 
platform for economic advancement is a result of their falling 
returns economic structure.